Dangote Targets $40b Expansion to Scale Refining, Fertiliser Output

News in brief:

-Dangote Group plans to invest $40 billion over five years to expand oil refining, fertiliser production and other industrial operations.

-The expansion will increase the capacity of the Dangote Petroleum Refinery and position the group to become the world’s largest urea fertiliser producer.

Dangote Group has unveiled plans to invest at least $40 billion over the next five years to expand its fertiliser and oil refining operations as part of its long-term growth strategy.

The plan, outlined under the company’s Vision 2030 programme, was disclosed in a statement by the African Export-Import Bank. The strategy sets out a two-phase expansion agenda covering the period between 2025 and 2030 aimed at strengthening the group’s industrial capacity and exploring new sectors.

Central to the expansion plan is the scaling up of operations at the Dangote Petroleum Refinery.

The group intends to increase the refinery’s production capacity from 650,000 barrels per day to about 1.4 million barrels per day, significantly boosting refining output in Africa.

The refinery, currently the largest single-train refinery on the continent, is expected to play a major role in improving regional energy security and reducing reliance on imported petroleum products.

Fertiliser Production to Quadruple

The expansion plan also includes a substantial increase in fertiliser production. Dangote Group plans to scale output from 3 million tonnes per year to 12 million tonnes annually. If achieved, the development would position the company as the world’s largest producer of urea fertiliser.

The move is expected to strengthen fertiliser supply across Africa and support agricultural productivity on the continent.

Beyond refining and fertiliser production, the group is also exploring growth opportunities in several other industries. These include cement, rice and food production, as well as investments in infrastructure such as ports and pipelines. The company is also considering ventures in gas, mining, power generation and data centres as part of its diversification strategy.

Afreximbank Backs Refinery Financing

To support the expansion, Dangote Group recently secured a $2.5 billion facility underwritten by the African Export-Import Bank as part of a $4 billion syndicated term loan for Dangote Petroleum Refinery and Petrochemicals.

President of Dangote Industries Limited, Aliko Dangote, said the partnership with the bank reflects a shared commitment to Africa’s industrial transformation.

According to him, the bank supported the refinery project from its early stages when many stakeholders were sceptical about the scale of the investment.

Dangote noted that both institutions share the goal of strengthening local capacity, reducing dependence on imports and ensuring that Africa’s industrial development is led by Africans.1

President of Afreximbank, George Elombi, described the partnership as an example of collaboration aimed at unlocking Africa’s economic potential.

He said the initiative reflects a collective determination to reduce the continent’s reliance on external supplies and ensure that Africa’s natural resources are harnessed to benefit its people.

The planned investments are expected to enhance Africa’s energy security, boost fertiliser self-sufficiency and accelerate industrial transformation across the continent.